Chargeback Liability
The financial responsibility a business bears when a customer disputes a transaction and the payment is reversed.
Chargeback liability is the cost a business absorbs when a cardholder disputes a transaction and the funds are reversed — including the disputed amount plus fees and operational overhead.
Fraud connection
Fraudulent transactions frequently end in chargebacks, and the fully-loaded cost of each runs well above the face value once labor and fees are counted — part of the reason fraud costs roughly 4.41 times its face value (see the ROI methodology).
Managing the exposure
Detection reduces disputes; insurance can cover the identity-fraud-driven portion of the loss. Learn more on the Solution page.
Account Takeover (ATO)
A form of third-party fraud where an attacker gains control of a legitimate account and uses it to transact or extract value.
False Decline
A legitimate customer wrongly rejected by fraud controls — a hidden revenue loss that grows as thresholds tighten.
First-Party Fraud
Fraud in which a real person uses their own or a manipulated identity to obtain goods, credit, or services they never intend to repay.
Synthetic Identity Fraud
Fraud committed using a fabricated identity that combines real and fake information to pass verification and open accounts.